Systems, methods, and computer program product for real estate value analysis

Abstract

Methods, apparatus, and computer-readable media are described for generating a credible market value that is utilized to produce a listing price for a property with reduced risk of a substantial reduction in the listing price before selling the property and for assessing risk of incorrectly pricing a property. A subject property, selected comparables, and selected comparables having multiple sales are imported from one or more databases for analysis. Information that is imported may include, for example, property features, original listing prices, record of days on the market, and a final listing price and sales price for each property that was sold. A market analysis process is run to produce relative market assessments and a residential value process is run including appreciation calculations based on the comparable properties having multiple sales to produce the credible market value. Graphs are plotted and other computer outputs are provided to identify the risk of incorrectly pricing a property and to illustrate that risk to a potential seller. Additionally, tools are provided to readily illustrate how changes in underlying assumptions affect the analysis.

Description

CROSS REFERENCE TO RELATED APPLICATION[0001]The present application claims the benefit of U.S. Provisional Patent Application No. 60 / 903,646 entitled “REAL ESTATE VALUE ANALYSIS METHODS AND SYSTEMS” and filed on Feb. 27, 2007 which is hereby incorporated by reference in its entirety.FIELD OF THE INVENTION[0002]The present invention relates generally to real estate value analysis systems, methods, and computer program products, and more particularly to advantageous techniques and models for residential pricing analysis, pricing sensitivity analysis, risk assessment, and appreciation analysis.BACKGROUND OF INVENTION[0003]One or more real estate professionals, realtors, may be invited by a home or property owner to evaluate the “value” of their home and quote a likely selling price. In today's environment, the realtor will visit the home and take note of its features and then manually review a multiple listing service (MLS) for comparable homes that have recently sold in the area. This...

AI Technical Summary

Benefits of technology

[0008]Among its several aspects, the present invention recognizes that there is a need for new and improved tools and techniques that provide more accurate value analysis. To such ends, systems, methods, and computer program products for real estate property value analysis are described in the present invention. An embodiment of the present invention includes a method for generating a credible market value that is utilized to produce a listing price for a property with a reduced risk of a substantial reduction in the listing price before selling the property. Property data is imported from one or more databases having a plurality of properties for sale and that have been sold in a specified area which includes the subject property, selected comparable properties, and properties having multiple sales, wherein the property data includes property features, original listing prices, and a final listing price and sales price for each property that was sold and wherein the selected comparable properties are selected based on a relevance for comparison with the subject property. A market analysis process is run to produce relative market assessments. A residential value process is run including appreciation calculations based on the comparable properties having multiple sales to produce the credible market value, wherein the credible market value is supported by the relative market assessments and the appreciation calculations to thereby reduce the risk of a substantial reduction in the listing price before selling the property.

[0010]Another embodiment of the present invention addresses a computer-readable medium storing a computer program which causes a computer system to perform a method for generating a credible market value that is utilized to produce a listing price for a property with a reduced risk of a substantial reduction in the listing price before selling the property. Property data is imported from one or more databases having a plurality of properties for sale and that have been sold in a specified area which includes the subject property, selected comparable properties, and properties having multiple sales, wherein the property data includes property features, original listing prices, and a final listing price and sales price for each property that was sold and wherein the selected comparable properties are selected based on a relevance for comparison with the subject property. A market analysis process is run to produce relative market assessments. A residential value process is run including appreciation calculations based on the comparable properties having multiple sales to produce the credible market value, wherein the credible market value is supported by the relative market assessments and the appreciation calculations to thereby reduce the risk of a substantial reduction in the listing price before selling the property.

Problems solved by technology

The graph also includes a third indication of a calculated average difference from a property's original list price to sales price after the first indication for each property having the original list price different from the final list price and the third indication represents a risk of incorrectly pricing a property.

Images